of the United States, for the use of the marine hospital of the district of Boston and Charlestown."

NAVY DEPARTMENT,

Bureau of Medicine and Surgery, April 7, 1858.

SIR: In reply to your communication of the 5th instant, inquiring from what source the "necessary funds were collected for the original purchase of the United States hospital lands at Chelsea, and if any means were resorted to except the tax called the hospital tax, deducted from the monthly pay of officers, seamen, and marines," I have the honor to say, that the original purchase money was derived exclusively from the hospital fund.

It may be pertinent to the inquiry to state, that as early as March 2, 1799, Congress passed an act directing the Secretary of the Navy to deduct twenty cents per month, after the 1st day of September ensuing, from the pay of the officers, seamen, and marines of the navy of the United States, and to pay the same quarter-annually to the Secretary of the Treasury, to be applied to the temporary relief and maintenance of the sick and disabled seamen in hospitals or other proper institutions, and when the fund shall be sufficient, to purchase grounds, &c.

In February, 1811, Congress established a board of commissioners, "by name and style commissioners of navy hospitals," consisting of the Secretary of the Navy, Secretary of the Treasury, and Secretary of War, who were empowered to take charge of the funds collected under the act of March 2, 1799, and were required to procure, at suitable places, proper sites for navy hospitals.

In pursuance of this enactment, Smith Thompson, then Secretary of the Navy, purchased the estate at Chelsea, Massachusetts, on the 11th August, 1823, and directed the agent, William L. Rogers, then a purser in the navy, to have the deed of conveyance made out in the names of the Secretary of the Navy, Secretary of the Treasury, and Secretary of War, "for the time being commissioners of naval hospitals and trustees of the navy hospital fund."

On the 16th of October following, Constant Freeman, then Fourth Auditor of the Treasury Department, notified Mr. Rogers that the purchase money had been remitted and debited to the navy hospital fund.

It would thus appear that the hospital fund, accruing from a tax upon the pay of the navy, was the only means resorted to for the acquisition of the property, the best portion of which has been alienated for objects not contemplated by the statutes authorizing this deduction from the pay of the navy.

Very respectfully, your obedient servant,

Hon. WARREN WINSLOW,

House of Representatives, Washington.

W. WHELAN.

1st Session.

No. 365.

PARAGUAY.

[To accompany Joint Resolution H. R. No. 29.]

MAY 4, 1858.

Mr. RITCHIE, from the Committee on Foreign Affairs, made the fol

lowing REPORT.

The Committee on Foreign Affairs, to whom was referred that part of the President's message which relates to the difficulties between the United States and the republic of Paraguay, have had the same under consideration, and beg leave to report:

That in 1845 the government of Paraguay published decrees inviting foreigners to come and reside in that country for the purpose of carrying on manufactures and commerce, and promising to such as would introduce machinery or kinds of industry not before used in that country, exclusive privileges with regard to said machinery and industry for a certain number of years.

Induced by these decrees, a number of citizens of the United States sent out steamboats, and commenced navigating the waters of Paraguay. They erected a wharf; built and put into operation a saw-mill, and established a cigar factory. For a time these enterprises received the protection and encouragement of the government of Paraguay, as promised in its decrees. Subsequently, however, this protection was, without any just reason, withdrawn. Arbitrary and unjust decrees, suggested, apparently, by the personal and private interests of the president of Paraguay, were issued against the said citizens of the United States, who, after being subjected to many indignities and to a total loss of their property, were finally compelled to abandon the country.

[For a detailed account of these events, see documents which accompany Senate Report on this subject, No. 60, 1st session of 35th Congress.]

Your committee report further, that a treaty was, in 1853, diawn up and signed by the minister of the United States and

on behalf of the government of Paraguay. This treaty was substantially the same as other treaties entered into by Paraguay with Great Britain, France, and Sardinia, which are now in force. When the treaty with the United States was before the Senate of the United States for ratification, it was found to require some verbal amendments, such as the substitution of the words "The United States of America"-the proper title of our government-for the words "The

North American Union," which had been erroneously inserted in the treaty. These amendments were made, and the treaty thus amended was sent to Paraguay for ratification. When these amendments were submitted to the President of Paraguay, he refused, in a very insulting manner, to ratify them, and closed all correspondence on the subject. (See documents above referred to.)

Your committee further report that the United States steamship Water Witch, Thomas J. Page, lieutenant commanding, was, by direction of the President of the United States and under instructions from the Secretary of the Navy, despatched "to survey and explore the river La Plata and its tributaries," which by the proper authorities had been declared open to commerce. In pursuit of the objects of his expedition, Lieutenant Page obtained the permission of the Argentine Confederation and of the province of Corrientes, and was earnestly requested by the president of the said confederation and the governor of Corrientes, to explore a portion of the Parana river, which forms the boundary between Corrientes and Paraguay. The right to navigate that portion of the Parana was common to Paraguay and the Argentine Confederation. No right or claim to the exclusive use or jurisdiction of this part of the Parana has been alleged on behalf of Paraguay. The right, moreover, to navigate the Parana, sɔ far as the province of Corrientes extends, is secured to the United States by treaty with the Argentine Confederation.

In conformity with the permission and requests aforesaid, Lieutenant Jeffers, in charge of the Water Witch, commenced on the 1st day of February, 1855, to make a survey of a part of the Parana river between the Argentine Confederation and Paraguay. On the same day, whilst engaged in making the survey and aground in a channel-way, which was more on the Corrientes than on the Paraguay side of the river, the Water Witch was fired into from the Paraguyan fort Stapera. The Water Witch was hulled ten times by the shot from the fort, the wheel was shot away, and Samuel Chaney, the helmsman, was mortally wounded. The fire from the fort was continued until the Water Witch was backed down the stream, out of range. This attack was made without any provocation, in waters not under the exclusive jurisdiction of Paraguay, on a ship-of-war of the United States engaged in a purely scientific investigation, under instructions from our own government and in compliance with the wishes of the Argentine Confederation and the province of Corrientes.

No reparation or apology for this outrage has been made by Paraguay; on the contrary, the conduct of the government of Paraguay has been insulting and defiant.-(See documents above referred to and those which accompany the message of the President of the United States.)

In view of all the circumstances, the committee are of opinion that the outrages upon our citizens and the wanton attack upon the Water Witch require redress, and that our relations with Paraguay ought to be put on such a footing as will give security against such occurrences as those above mentioned in future.

The committee, therefore, recommend the passage of the accompanying resolution.

CLAIMS OF STATES OF MAINE AND MASSACHUSETTS. [To accompany Bill H. R. No. 548.]

MAY 4, 1858.

Mr. RITCHIE, from the Committee on Foreign Affairs, made the following REPORT.

The Committee on Foreign Affairs, to whom was referred certain claims of the States of Maine and Massachusetts, arising under a treaty "To settle and define the boundaries between the Territories of the United States and the possessions of her Britannic Majesty in North America," &c., ratified August 22, 1842, dated August 9, 1842, respectfully report:

That by article fourth of said treaty, (8 Statutes at Large, 574,) the United States agreed to ratify certain titles, and confirm and quiet certain claims to lands. This agreement could only be carried into effect by the agency of Maine and Massachusetts, the States owning or claiming the lands which had been the subject of dispute with Great Britain. Part of the money now claimed by the said States is for expenses incurred in the fulfilment of the said 4th article of said treaty, and as the obligation in the article was incumbent on the United States, the committee are of opinion that the United States are bound to repay to the said States the amount expended by them as aforesaid. By the fifth article of said treaty, the United States agreed to pay to Maine and Massachusetts all claims for expenses incurred by them. theretofore in protecting the disputed territory, &c.-(See Statutes at Large, 8 vol., page 575.) The remaining claims of those now presented by Maine and Massachusetts arise under this fifth article, and in the opinion of the committee they ought to be paid by the United States.

Appropriations to the said States, for claims similar to those now presented and arising under the said treaty, have heretofore been made by Congress, and the validity of the claims has been uniformly recognized by the United States.

The following acts of Congress are referred to in which appropriations similar to those now asked for have been made:

Act of 3d March, 1843, section 5, (Statutes at Large, 5 vol., p. 623.) Act of 17th June, 1844, (5 Statutes at Large, 695.) Act of 3d March, 1851, (9 Statutes at Large, p. 626.)

This act allows interest to Maine on money borrowed and expended